With less than two months until the end of the year, we still have time to save money on our next income tax return. We had a few weeks to pull the invoices out of the drawer, calculate the revenue and do the math. Down payment, purchase or mortgage loans are a great resource, although they involve fees.
For example, we still have time to make Special contributions to pension plans or mortgage amortization If we purchased the house before 2013.Furthermore, if we are considering buy an electric car It can be advanced, so we will deduce HMaximum €7,000. Apart from, we will have dTax on projects that improve energy efficiency.
Families with the greatest tax pressure
Spain is Eurozone countries with the fastest income growth over the past decade relationship with GDP. Fiscal pressures have increased particularly on households since 2020, with growth of 1.3% the second highest in the euro area after Malta. The OECD ranks Spain as the country with the highest household tax index, with personal income tax or social contributions accounting for 61.2% of all tax revenue, compared with the OECD average of 42%. We are at the level of Germany or the United States, where the government expects to collect $204 million more in 2024 than last year.
While we still don’t have to report to the tax agency, the fiscal year ends in a few weeks and the next tax return is due and we can avoid paying more.Experts warn that the chances are getting slimmer: “We all remember the deduction for housing investments that we Spaniards often use,” he assures COPE José Pedreira, Expert Coordinator, AEDAF IRPF, Spanish Association of Tax Consultants, “ Income tax is increasingly becoming a tax with fewer loopholes, with taxpayers effectively starting to earn only income from work. “
Pension plans, mortgages and donations
They are the most well-known tax benefits. Contributions to the pension scheme are deducted directly from the tax base, the real reduction is up to a maximum of €1,500, and if we do not reach this amount this year, we can make extraordinary contributions.Another possibility is amortized mortgage loan If we purchased the home before 2013, or Donate to NGOs, cultural associations, trade unions or political parties.
Electric cars and windows
They are respites of new possibilities in this exercise. If we’re thinking about buying an electric car anytime soon, maybe we can get ahead of it. Expenses must be less than €45,000 and a deduction of 15% is allowed, up to a maximum of €20,000. Retrofitting to improve energy efficiency can also lead to significant savings. There isn’t much time left for a major renovation, but maybe it’s time to do some small work like replacing the windows, if that’s what we’re so inclined to do. The deduction will depend on the reduction in heating or cooling consumption, with energy savings of only 7%, up to a maximum saving of 20% and €5,000.
Growing differences between communities
They are general deductions throughout the territory, but Spain remains a mosaic of payments and deductions, Depends on the community Where we live, we pay more or less with the same level of wages, We may get more or less deductions, Dependent on income, restrictions and legislative details. For this income tax return, only 5 communities have announced that they will reduce personal income taxes.
Rising wages offset rising prices, and although inflation was much higher, The pay rise will result in many people being promoted and having to pay more to the Treasury. To avoid this, these portions are adjusted for inflation. Madrid, the Basque Country, the Canary Islands, Aragon and Navarra will all do the same. What is noteworthy, Pedrera said, is that “in this community there is a greater difference between, for example, Madrid and Asturias, the tax rate is one of the highest and there is no deflation in the autonomous region part” . There are also some communities that can deduct medical expenses, household help, minor education and even transportation expenses.